Question

Match the descriptions to economic and non-economic factors that affect a business cycle.

leisure has reached an
all-time high
there has been a sudden
decreasein consumer spending
in the country
there is political unrest in the
country that provides raw
material to a business
business has allocated funds
for capital investments
banks have reduced the interest
rates

Answer 1

leisure has reached an all-time high NON-ECONOMIC FACTOR: cultural factor that negatively affects human resources and general education since time spent on leisure activities is not spent working or gaining knowledge.

there has been a sudden decrease in consumer spending in the country ECONOMIC FACTOR: private consumption is by far the largest component of the GDP (around 70%) and a decrease in private consumption will negatively affect the whole economy.

there is political unrest in the country that provides raw material to a business NON-ECONOMIC FACTOR: even though this takes place in another country, that country trades with us, and political unrest will negatively affect the business cycle.

business has allocated funds for capital investments ECONOMIC FACTOR: an effective allocation of capital investments will positively affect the whole economy boosting the economic cycle.

banks have reduced the interest rates ECONOMIC FACTOR: lower interest rates usually increase the money supply and boost economic growth.

Step-by-step explanation:

Answer 2

1. leisure has reached an all-time high NON-ECONOMIC FACTOR: cultural factor that negatively affects human resources and general education since time spent on leisure activities is not spent working or gaining knowledge.
2. there has been a sudden decrease in consumer spending in the country ECONOMIC FACTOR: private consumption is by far the largest component of the GDP (around 70%) and a decrease in private consumption will negatively affect the whole economy.
3. there is political unrest in the country that provides raw material to a business ECONOMIC FACTOR: even though this takes place in another country, that country trades with us, and political unrest will negatively affect the business cycle.
4. business has allocated funds for capital investments ECONOMIC FACTOR: an effective allocation of capital investments will positively affect the whole economy boosting the economic cycle.
5. banks have reduced the interest rates ECONOMIC FACTOR: lower interest rates usually increase the money supply and boost economic growth.